Colorado would restrict companies’ use of algorithms to set worker wages and consumer prices based on individuals’ personal data under legislation headed to Gov. Jared Polis (D).
The bill (HB 26-1210) aims to tackle what worker and consumer advocates have nicknamed “surveillance pricing” and algorithmic wage discrimination—allegedly a way for companies to use AI tools to set the highest possible prices and lowest possible wages for each person. The measure specifically bans the use of personal characteristics such as genetic data, history of online behavior, and biometric information in setting wages or prices.
The bill cleared its final legislative vote Thursday, when the House approved the Senate’s amendments.
State legislatures have considered more than 70 bills this year addressing personalized or surveillance-based pricing, with Maryland enacting a first-of-its-kind law restricting the way grocers and food-delivery services set prices. Algorithmic wage-setting has caught lawmakers’ attention as well but generated fewer legislative proposals.
The Colorado legislation carves out some exceptions, allowing employers to use AI to set wages based on workers’ performance and other job-related factors if they disclose that usage to the workers. The bill also exempts certain kinds of customer loyalty and discount programs from the pricing restrictions.
Tech industry advocates including the Chamber of Progress opposed the bill, arguing the exemptions are too narrow and wouldn’t allow commonly used discount pricing models.
To contact the reporter on this story:
To contact the editor responsible for this story:
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.